Burberry's Immediate Revamp: Schulman’s Turnaround Strategy

Burberry's new CEO, Joshua Schulman, introduced a revitalization strategy in response to declining sales and an operating loss reported in the first half of the financial year. The strategy includes a focus on core products, suspending dividends, and implementing a significant cost-saving program while addressing pricing concerns.

Burberry's newly appointed CEO, Joshua Schulman, unveiled a revitalization strategy addressing the challenges facing the British luxury brand. As sales decline, Burberry reported its first half-year loss, prompting Schulman to focus on outerwear and core customers.

In a pivotal move, Burberry suspended its 2025 dividend and announced a £40 million ($51 million) cost reduction plan. Schulman stated that the brand must act swiftly to stabilize and realign its business for sustainable growth.

The brand reported a 20% drop in revenue for the first half of the year. Burberry also acknowledged that its leather goods pricing strategy missed the mark, impacting sales. Creative Director Daniel Lee continues to strive for success with new designs.

(With inputs from agencies.)